In Wake of MF Global Collapse and JP Morgan losses, Stabenow
Urges Agencies to Complete Rules to Protect Consumers and the
Economy

Friday, May 18, 2012

Senator Debbie Stabenow, Chairwoman of the U.S. Senate
Committee on Agriculture, Nutrition and Forestry, today
strongly urged the officials charged with overseeing the
implementation of the Wall Street Reform and Consumer
Protection Act to finalize new rules to protect the U.S.
economy and the investors, consumers and businesses that rely
on the stability of markets. Chairwoman Stabenow said
the Agriculture Committee will hold hearings on the
implementation of Wall Street Reform in the coming weeks.

"Recent events like the MF Global bankruptcy and the
losses at JP Morgan are prime examples of why we needed to
pass this bill," Chairwoman Stabenow wrote in a letter
to the nation's top financial officials.
"These are certainly complex issues, and I applaud
you for keeping an open process that has allowed businesses
and consumers to comment on these rules. But after two years
of deliberation, it is time to get the rules written and to
fully implement this strong reform bill."

Two years ago Sunday, the U.S. Senate passed the Dodd-Frank
Wall Street Reform and Consumer Protection Act to clean up
abuses in the financial industry and stop future taxpayer
bailouts of the banks. Recent events like the MF Global
bankruptcy and the losses at JP Morgan are prime examples of
why we needed to pass this bill. These are certainly complex
issues, and I applaud you for keeping an open process that
has allowed businesses and consumers to comment on these
rules. But after two years of deliberation, it is time to get
the rules written and to fully implement this strong reform
bill.

I am particularly concerned with the need to implement
important reforms of the derivatives markets. Nearly
four years after the financial crisis, many swaps are still
trading in the dark while stronger capital and margin
standards have yet to be finalized. I understand that you
have faced significant budgetary, political, and legal
headwinds, and certainly there are interests that would
benefit from maintaining the status quo. However, we
need to get this done - these markets must be transparent and
accountable.

I know you have faced significant pressure from some in
Congress who want overturn the strong consumer and investor
protections passed in the Wall Street Reform Act. We
have seen proposals to defund the agencies charged with
protecting our markets even as events at home and around the
globe continue to underscore the need for effective oversight
of these markets. We cannot forget that in 2008 we were truly
on the brink of a global economic collapse. We cannot
return to those days of taxpayer bailouts and shadowy markets
monopolized by a few.

You have a difficult but important task. As Chair of the
Senate Agriculture Committee, I stand ready to do whatever is
necessary to help you complete this critical task on behalf
of American investors, consumers, and businesses that rely on
these markets. In the coming weeks, we will be holding
further hearings on accomplishing this goal. I look
forward to your cooperation.

Sen. Debbie Stabenow

Chairwoman, U.S. Senate Committee on Agriculture, Nutrition
and Forestry